Author
Topic: "the Mooch" (Read 41151 times)

Exactly!I raises the price of imported steel.The raised cost of import steel lowers the demand for import steel. But the steel is still needed so domestic steel sees increased demand.With increased demand comes increased prices. That’s just the way the cookie crumbles.

If you keep the price the same, you can still only sell what you can make. So, in theory, you'd make no more money.

That's assuming that you're at capacity. The whole point is the US has a steel industry that has shut down, not what we need to build steel mills.

There are certainly pluses and minuses on both sides, it's just my opinion that the costs outweigh the gains in this scenario. I don't see steel costs ever going back down (unless the tariffs are removed) so overall yes we have helped the steel industry grow in the US, but have severely impacted (hurt) every single manufacturer in the US that uses steel. And that's a MUCH larger pot then the ones making it. Just look at the effect it's already had on the economy as a whole. We won't even get into retaliation by china.

That's assuming that you're at capacity. The whole point is the US has a steel industry that has shut down, not what we need to build steel mills.

There are certainly pluses and minuses on both sides, it's just my opinion that the costs outweigh the gains in this scenario. I don't see steel costs ever going back down (unless the tariffs are removed) so overall yes we have helped the steel industry grow in the US, but have severely impacted (hurt) every single manufacturer in the US that uses steel. And that's a MUCH larger pot then the ones making it. Just look at the effect it's already had on the economy as a whole. We won't even get into retaliation by china.

Luckily taxes went down significantly so for now maybe it's a wash.

You still have some special steel alloys not being made anywhere else though. Our steel industry has also largely vanished and what is left focuses on research and special alloys. No point competing with the chinese in standard alloys maybe.

You still have some special steel alloys not being made anywhere else though. Our steel industry has also largely vanished and what is left focuses on research and special alloys. No point competing with the chinese in standard alloys maybe.

There are factors that tariffs won't fix that no one is talking about, too. I worked for an aluminum smelter in Charleston, SC years ago. It was Alcoa then, but now it's Century. The Charleston plant runs at 50% capacity because they're operating in an uncompetitive market for electricity. Power is too expensive for them to operated at 100%. The tariffs will do nothing for that plant.

There are factors that tariffs won't fix that no one is talking about, too. I worked for an aluminum smelter in Charleston, SC years ago. It was Alcoa then, but now it's Century. The Charleston plant runs at 50% capacity because they're operating in an uncompetitive market for electricity. Power is too expensive for them to operated at 100%. The tariffs will do nothing for that plant.

That needs to be renegotiated. The big guys here, get breaks on power, contingent on employee numbers being met.